FOUR months before the implementation of the three new auditing standards, certified public accountants (CPAs) in public practice are preoccupied in adapting to new quality framework standards. These include PSQM1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements; PSQM2, Engagement Quality Reviews; and PSA 220 (Revised), Quality Management for an Audit of Financial Statements.
The extant PSQC 1 is known for its checklist type of framework, with most of the quality manual content seemingly lifted from references found through a search engine. In contrast, PSQM 1 is more engaging due to the mention of processes that thoroughly evaluate the different aspects of a firm. It is also more flexible since the framework can be better suited to a firm's specific situation. However, shifting from the outgoing framework to a new one entails different tasks such as designating persons responsible for the System of Quality Management as well as its operational functions.
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